Answer:
5.14%
Explanation:
Determining the pretax cost of debt is the first to do prior to ascertaining after tax cost of debt.
Pretax cost of debt can be computed using the rate formula in excel.
=rate(nper,pmt,-pv,fv)
nper is the number of times the bond would coupon interest,hence paying coupon every six months for 20 years means 40 coupon payments
pmt is the semiannual coupon bondholders would received from the bond i.e $1000*7.25%*6/12=$36.25
pv is the current market price at $875
fv is the face value of $1000
=rate(40,36.25,-875,1000)=4.28% semiannually
=4.28%
*2=8.56% annually
after tax cost of debt=8.56%*(1-t),where t is the tax rate of 40% or 0.40
after tax cost of debt=8.56%*(1-0.4)=5.14%
Form design is one example of an input control.
Option a
<u>Explanation:</u>
Application controls are of three types namely,
- Input controls - Ensures accurate, valid and complete data input
- Processing controls - Ensures processed transactions and checking that no transaction will be processed more than once
- Output controls - Ensure system output is not misdirected, corrupted or lost.
<em>Form design:</em><em> </em>
It is the process of designing forms that includes clarification of the specific needs of application, identifying the required information, and devising a design that meets all the needs. The other examples of input control are as follows,
- Sequentially prenumbered forms
- Turnaround documents
<span>If a division of cream, inc. had average operating assets of $2,600,000 and the company requires a return on investment of at least 8%, then the division earned a controllable margin of $250,000 on sales of $3,200,000, so the residual income will be $42,000.</span>
Answer:
Hedge funds
Explanation:
A mortgage is a long-term loan facility used to finance the purchase of homes and other properties. It is a long-term loan due to the high amount that needs to be borrowed. Customers in need of a mortgage facility may go to a bank, mortgage bankers, or savings and loan institution.
A hedge fund is a portfolio investment instrument. It is an association between a professional fund manager and investors. They pool their resources together in diversified investments. The investors are passive while the fund manager aggressively invests the funds r to generate higher returns to the investors.